“Can we raise capital gains taxes… YES WE CAN”. What kind of presidential candidate responds to a question about raising capital gain taxes by saying “That’s not fair!”? That was just part of Barack (I’m a Lover Not a Fighter) Obama’s childish response to a debate question on the issue. The rest of his answer defied logic. This from IBDeditorials.com - Capital Pains:
Gibson asked Obama: “You have said . . . you would favor an increase in the capital gains tax. . . . Why raise it at all, especially given the fact that 100 million people in this country own stock and would be affected?”
Obama’s answer: “Well, Charlie, what I’ve said is that I would look at raising the capital gains tax for purposes of fairness. We saw an article today which showed that the top 50 hedge fund managers made $29 billion last year — $29 billion for 50 individuals. And part of what has happened is that those who are able to work the stock market and amass huge fortunes on capital gains are paying a lower tax rate than their secretaries. That’s not fair.
This wasn’t a first. Obama has said more than once he would lift the capital gains tax rate from the current 15% to a punitive 28%. In answering a question moments earlier from ABC News reporter and former Clinton White House aide George Stephanopoulos, Obama had vowed not to raise taxes on anyone earning less than $200,000 a year. Later, he completely contradicted himself. Apparently, Obama doesn’t know that 52% of all adults now own stock — so raising the capital gains rate from 15% to 28% would hit millions of people with incomes below $200,000.
That includes, by the way, the secretary of those hedge fund managers, who likely owns stock herself. She’ll really feel the brunt. Indeed, data from Congress’ Joint Committee on Taxation show 20% of those with capital gains in 2005 had annual incomes less than $50,000. So Obama’s “tax-the-rich” plan to jack up cap gains rates would in fact become a huge middle-class tax hike.
Each of the three major capital gains tax cuts since President Kennedy’s was followed by booming stock prices and a surging economy. This is no accident; it’s cause and effect. What if Obama gets his way? A just-released Heritage Foundation study finds raising the cap gains tax rate to 20% and restoring the 37% rate on dividends would over two years kill 683,000 jobs, reduce GDP by $90 billion and slash $1,675 from the average family of four’s income. Obamanomics would be a disaster.
During this campaign, Obama has styled himself as an apostle of “hope” who’ll lift up the poor, the destitute and the downtrodden. But his reckless tax hikes, based on envy, not sound economics, would deprive those very same poor and minority communities of the capital needed to provide jobs, incomes and better futures for the people who live in them. Call it the audacity of hopelessness.
In fact, history shows that when capital gains taxes are raised, the government actually collects less revenue. This is because capital gains taxes are easily avoided by simply hanging onto the investment vs. selling and taking a gain. History also shows, as you can see in the chart, that when capital gains are lowered - as they were in 2002 (28% to 15%) - the government actually collects more tax revenue.So why would BO throw a tantrum and insist on raising capital gains taxes, when he knows full well that the government would lose revenue? It makes no sense, right? Wrong… it makes complete sense if you are a Marxist. As long as everyone is equally poor, he’s a happy man. . . . [Read More by Scott Miller]
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